March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
APSC Capability Reviews – Innovative Delivery
The following is an aggregation of the Australian Public Service Capability Review ratings of agencies
on ‘Innovative Delivery’ (noting many have been affected by Machinery of Government changes
since).
Department
Capability
Assessment rating
Prime Minister and
Cabinet*
Innovative delivery
Strong
Immigration*
Innovative delivery
Development area
Human Services*
Innovative delivery
Well placed
Infrastructure*
Innovative delivery
Well placed
Customs#
Innovative delivery
Development area
Finance+
Innovative delivery
Well placed
Regional Australia+
Innovative delivery
Strong
Agriculture+
Innovative delivery
Well placed
Australian Taxation
Office+
Innovative delivery
Development area
Foreign Affairs and
Trade+
Innovative delivery
Well placed
Industry+
Innovative delivery
Development area
Treasury+
Innovative delivery
Well placed
Families and
Community
Services+
Innovative delivery
Well placed
Resources+
Innovative delivery
Development area
Rating image
* = released in November 2012
# = released in July 2013
+ = released in December 2013
1
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
The explanation of the ratings
Assessment rating
Rating image


Strong



Well placed


Development area

Rating description
Outstanding approach for
future delivery in line with the
model of capability
Clear approach to monitoring
and sustaining future capability
with supporting evidence and
metrics
Evidence of learning and
benchmarking against peers
and other comparators
Capability gaps are identified
and defined
Is already making
improvements in capability for
current and future delivery, and
is well placed to do so
Is expected to improve further
in the short term through
practical actions that are
planned or already underway
Has weaknesses in capability
for current and future delivery
and/or has not identified all
weaknesses and has no clear
mechanism for doing so
More action is required to close
current capability gaps and
deliver improvement over the
medium term
Agencies were rated on 10 criteria. (Please note - while innovative delivery has been targeted here,
other criteria and their respective ratings may also have relevance to the practice of innovation
within agencies.)
Criteria
Leadership
 Set direction

Motivate people

Develop people
Strategy
 Outcome-focused
strategy
 Evidence-based choices

Collaborate and build
common purpose
Delivery
 Innovative delivery



Plan, resource and
prioritise
Shared commitments and
sound delivery models
Manage performance
2
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Detailed ‘innovative delivery’ assessments for each agency
Agency
Department of the Prime Minister and Cabinet
Department of Immigration and Citizenship
Department of Human Services
Department of Infrastructure and Transport
Australian Customs and Border Protection Services
Department of Finance and Deregulation
Department of Regional Australia, Local Government, Arts and Sport
Department of Agriculture, Fisheries and Forestry
Australian Taxation Office
Department of Foreign Affairs and Trade
Department of Industry, Innovation, Climate Change, Science, Research and
Tertiary Education
Treasury
Department of Families, Housing, Community Services and Indigenous Affairs
Department of Resources, Energy and Tourism
Page number
4
6
8
10
12
14
16
18
20
23
25
28
31
33
3
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Department of the Prime Minister and Cabinet1
Innovative delivery - Summary



PM&C has a strong culture of innovation in policy thinking and has dedicated resources to
environmental scanning.
Innovations have emerged in the way PM&C supports the Prime Minister, Cabinet and the APS more
broadly.
Work is underway to spread innovations consistently across the department.
Innovative delivery - Detailed
Guidance questions




Does the organisation have the structures, people capacity and enabling systems required to
support appropriate innovation and manage it effectively?
Does the leadership empower and incentivise the organisation and its partners to innovate and learn
from each other, and the front line, to improve delivery?
Is innovation explicitly linked to core business, underpinned by a coherent innovation strategy and
an effective approach towards risk management?
Does the organisation evaluate the success and added value of innovation, using the results to make
resource prioritisation decisions and inform future innovation?
Rating
Strong
A very strong culture of policy innovation exists within PM&C. Innovative thinking is highly valued
and established mechanisms support it. In its self-assessment, the department noted that innovation
is explicitly linked to business operations and cited its values statement as identifying the application
of imagination and innovation as critical to its work.
PM&C has ensured that resources are available for environmental scanning and has introduced a
range of new methodologies to assist policy teams to assess, prioritise and integrate information. In
the area of recruitment, the department has introduced a winter internship program, which attracts
high-quality Australian postgraduate students who are studying at elite universities in Europe and
the United States.
There are also examples of innovation in the way that PM&C supports Cabinet, such as the move to
place the Incoming Government Brief and Cabinet briefs on iPads, decision-support analytics to track
progress in the Expenditure Review Committee in real time, Cabtrac, and the refreshment of the
Cabinet submission system.
1
Sourced from the Australian Public Service Commission publication CAPABILITY REVIEW Department of the Prime Minister and Cabinet,
accessed at http://www.apsc.gov.au/aps-reform/current-projects/capability-reviews/pmc/4-more-detailed-
assessment-of-departmental-capability. This material is licensed for reuse under a Creative Commons BY Attribution 3.0
Australia licence.
4
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Some of the innovations that have been introduced could be used more widely. Work is being done
to spread them more broadly across the department, and this should continue. The recent decision
to move the Strategy and Delivery Division into the Domestic Policy Group will assist in this.
Externally, the department is committed to encouraging and coordinating the development of crossgovernment policy and implementation. One innovation that has benefited the APS as a whole has
been the introduction of shared delivery agreements as a mechanism to assign responsibility in
areas of complex policy which involve several ministers.
The Secretary's role in shaping the future APS is performed in partnership with the APSC. In
conjunction with the APSC, PM&C has sponsored the establishment of the APS200 as a forum to
bring together and harness the capabilities of the most senior SES staff across the APS. The APS200 is
a mechanism for sharing knowledge, has a role in communicating the vision of the APS, and
undertakes specific policy or change-management projects commissioned by the Secretaries' Board.
One of its specific projects is to examine and share current innovative practices and identify
opportunities for future innovation across the APS.
PM&C's focus on innovation is balanced by an established risk management culture.
5
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Department of Immigration and Citizenship2
Reinvigorate Innovation
DIAC has a demonstrated capability to develop innovative solutions to complex challenges in policy
and service delivery. Many of DIAC's international counterparts have adopted some of its more
innovative policy and service delivery solutions such as the Electronic Travel Authority.
However, in recent years despite the existence of a small fund for the purpose, innovation has tailed
off. The review team believes this is due to the following factors:



the department is too occupied by crises to give attention to innovation
the department lacks an innovation strategy, with streamlined processes, that is championed by the
SES
the department has a high level of risk aversion.
The department's staff would benefit from a clear signal from the top that innovation is welcomed
and greater resources and a systematic framework to support the development and implementation
of new ideas and initiatives.
Innovative delivery - Summary



Over the years, international counterparts have adopted some of DIAC's more innovative policy and
service delivery models.
Innovation has become a lesser priority in recent years, with staff distracted by crises and as
pressures for delivery increase.
Innovation tends not to be considered core business in DIAC. There is little encouragement for staff
to be innovative. Risk aversion is partly responsible. The recently established Innovation Fund is a
step in the right direction.
Innovative delivery - Detailed
Guidance Questions




Does the organisation have the structures, people capacity and enabling systems required to
support appropriate innovation and manage it effectively?
Does the leadership empower and incentivise the organisation and its partners to innovate and learn
from each other, and the front line, to improve delivery?
Is innovation explicitly linked to core business, underpinned by a coherent innovation strategy and
an effective approach towards risk management?
Does the organisation evaluate the success and added value of innovation, using the results to make
resource prioritisation decisions and inform future innovation?
Rating
Development area
2
Sourced from the Australian Public Service Commission publication CAPABILITY REVIEW Department of Immigration and Citizenship,
http://www.apsc.gov.au/aps-reform/current-projects/capability-reviews/diac/4-more-detailedassessment-of-department-capability. This material is licensed for reuse under a Creative Commons BY Attribution 3.0 Australia
accessed at
licence.
6
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
The department has a history of implementing several large-scale initiatives that have been adopted
by other countries. These include the world's first electronic visa with the Electronic Travel
Authority, and Advance Passenger Processing, which commenced in 2003, and which is still regarded
as the world's most sophisticated real-time border management system. The department also has a
record of implementing successful change in response to events and crises. There are instances
where the department has adopted improvements at operational levels with the notion of doing
‘more with less’. In some areas, the department also has demonstrated a cross-agency approach to
innovation, which has received support from external stakeholders and central agencies. An example
of this is the recent National Targeting Centre proposal, which aims to facilitate better informed and
targeted risk assessments for border threats based on a whole-of-government collection of
information and intelligence holdings.
However, while the department has successfully innovated in the past, innovation is currently a
lower priority, which decreases staff motivation in this area. The lack of enthusiasm for innovation is
arguably a consequence of the environment within which the department currently operates, where
there are heavy pressures of crises and a demanding government agenda. The department's riskaverse nature, fragmented operating structure, and lack of an explicit and coherent innovation
strategy also contribute to difficulties in gaining traction for innovative ideas.
A survey indicates that guidance about the importance of innovation from the DIAC leadership has
been lacking, with only 33 per cent of staff stating that the SES encourage innovation (State of the
Service Report Employee Survey, 2011). Similarly, the department's risk-averse nature has led to a
low tolerance for error, with staff believing that their ideas will not be seriously considered by
managers. As a result, staff feel that they are not given permission to innovate, which inhibits their
motivation to generate new ideas without the freedom to fail. The department would benefit from a
clear innovation directive and a systematic framework to support the development and
implementation of new ideas and initiatives. The department has acknowledged this by introducing
an Innovation Fund for the 2011–12 financial year. This is a step in the right direction in encouraging
innovative ideas, although it is focused on cost benefits with less consideration of qualitative
outcomes, such as improving client satisfaction, departmental culture or stakeholder relations.
7
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Department of Human Services3
Innovative delivery - Summary


The DHS Network is innovative, and driven by the desire to make people's lives better and the
pressure to become more efficient. This innovation in the Network will benefit from the formal
framework and guidelines which the department has indicated it will introduce.
Innovation within the department would also be fostered by the establishment of a service design
map to guide innovative efforts and a greater tolerance for mistakes, which are a natural part of the
trial and error process of innovation.
Innovative delivery - Detailed
Guidance Questions
1. Does the organisation have the structures, people capacity and enabling systems required to
support appropriate innovation and manage it effectively?
2. Does the leadership empower and incentivise the organisation and its partners to innovate and learn
from each other, and the front line, to improve delivery?
3. Is innovation explicitly linked to core business, underpinned by a coherent innovation strategy and
an effective approach towards risk management?
4. Does the organisation evaluate the success and added value of innovation, using the results to make
resource prioritisation decisions and inform future innovation?
Rating
Well placed
Harnessing internal innovation
The department currently does not have an innovation framework or a coordinated approach to
supporting innovation and it is perhaps understandable, given the nature and scale of the services it
provides, that the department has a fairly risk-averse culture.
In the Strategic Plan 2012–16 the department has demonstrated an awareness of the issue by
stating that it will introduce a support framework and guidelines to encourage and embrace
innovation in service delivery as one of its outcomes. The review team agrees that a formal
framework and guidelines would help create a culture that acknowledges the trial and error of the
innovation process. Equally, the introduction of a service design map will provide a focus for
innovative ideas and efforts.
Formal processes notwithstanding, there is evidence of significant innovation occurring. For
instance, innovations within the Network (some of which have rolled out nationally) have created
major efficiencies in work flows, to the benefit of customers. For example, the Customer Liaison
3
Sourced from the Australian Public Service Commission publication CAPABILITY REVIEW Department of Human Services, accessed at
http://www.apsc.gov.au/aps-reform/current-projects/capability-reviews/dhs/4-more-detailed-assessment-ofdepartmental-capability. This material is licensed for reuse under a Creative Commons BY Attribution 3.0 Australia licence.
8
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Officer (CLO) role was borne out of necessity in one split-level office. Wireless technology was
introduced to enable the CLO to communicate to staff in the back office or on both levels of the
office, resulting in quicker resolution of customers' needs. The success of the model is evident in its
broader adoption across the DHS Network and the department is open to trialling new approaches
and systems through study within its ‘concept labs’.
Regardless, It seems that much innovation happens ‘under the radar’ in the regions and that the
closer the staff is to the customer the greater the level of innovation, which is driven either by cost
or by the desire to make people's lives better. Although the CLO role is one example of a positive
innovation that has been recognised and held up by the DHS Executive, feedback from staff is that,
in order to foster local innovative action, they would benefit from greater support in progressing
their ideas and an organisational culture of greater tolerance for mistakes. They also suggested that
the spread of innovative practices across the department is difficult due to the disjointed nature of
the organisation and the absence of a clear service design map against which to measure the worth
of innovations. Specifically workshop participants noted that while a lot of innovation is underway in
the Network and other areas it may at times be misdirected and prove neither sustainable nor
desirable. The generation of innovative ideas at the local level must be encouraged, within a
framework of sharing best practice and meeting existing government requirements.
9
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Department of Infrastructure and Transport4
Innovative delivery - Summary



The department has adopted new delivery approaches in recent years and can point to substantial
innovation. However this is patchy and there remains a strong focus on the status quo in some
regulatory areas.
The push to ‘have a view’ in the five directions vision statement provides licence for innovation. The
review has received mixed messages concerning practices on the ground.
The department has been an important catalyst for the adoption of new models of
intergovernmental decision making, particularly with the establishment of the national regulators.
Innovative delivery - Detailed
Guidance Questions




Does the organisation have the structures, people capacity and enabling systems required to
support appropriate innovation and manage it effectively?
Does the leadership empower and incentivise the organisation and its partners to innovate and learn
from each other, and the front line, to improve delivery?
Is innovation explicitly linked to core business, underpinned by a coherent innovation strategy and
an effective approach towards risk management?
Does the organisation evaluate the success and added value of innovation, using the results to make
resource prioritisation decisions and inform future innovation?
Rating
Well placed
The department has proven its ability to innovate and it has undergone a period of significant
change. More could be done to acknowledge the innovative nature of much of the department's
work and to encourage more innovation in areas that have yet to undergo substantial reform, for
example the regulatory areas.
Perceptions are changing. The most improved question from the 2008 to 2011 departmental
employee survey was ‘We are encouraged to be innovative in our thinking.’ In 2008, 32% of
respondents agreed with this comment, while in 2011, 54% agreed.
There is evidence to support this, particularly in the area of intergovernmental reform. Under the
umbrella of the Council of Australian Governments, the development of joint Commonwealth–state
boards and project offices has encouraged a more national approach and enabled the department to
reposition itself as a facilitator in establishing the national transport safety regulators. The work
done by the NBII division in reframing the department's program management skills to that of an
informed investor provides another example of the department's innovation capability.
4
Sourced from the Australian Public Service Commission publication CAPABILITY REVIEW Department of Infrastructure and Transport,
accessed at http://www.apsc.gov.au/aps-reform/current-projects/capability-reviews/doit/4-more-detailed-
assessment-of-department-capability. This material is licensed for reuse under a Creative Commons BY Attribution 3.0 Australia
licence.
10
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
The department's Regulatory Lessons Learned and Infrastructure Leadership seminars are well
attended and offer scope for the exchange and cross-fertilisation of ideas.
The establishment of the Policy and Research Division provides a vehicle for innovative policy
development, including through rotation of business area staff through the division.
The push to ‘have a view’ in the five directions vision statement provides licence for innovation. This
couples with a deliberate attempt to foster from the top a culture of boundary pushing and a
willingness to try something new.
11
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Australian Customs and Border Protection Services5
Innovative delivery - Summary



The agency has implemented a number of innovative technology improvements, including the
introduction of SmartGate for processing international arrivals.
Broader consideration of innovation that includes adapting and improving processes, systems and
structures may lead to increased efficiencies.
Encouraging and celebrating innovating thinking could be aided through a formal innovation
framework.
Innovative delivery - Detailed
Guidance Questions
1. Does the organisation have the structures, people capacity and enabling systems required to
support appropriate innovation and manage it effectively?
2. Does the leadership empower and incentivise the organisation and its partners to innovate and learn
from each other, and the front line, to improve delivery?
3. Is innovation explicitly linked to core business, underpinned by a coherent innovation strategy and
an effective approach towards risk management?
4. Does the organisation evaluate the success and added value of innovation, using the results to make
resource prioritisation decisions and inform future innovation?
Rating
Development area
The agency has been recognised for introducing a number of innovative initiatives to facilitate
improved work practices. Examples include the SmartGate system deployed for arriving air
passengers, the Enhanced Passenger Assessment and Clearance System, which strengthens the
agency’s traveller risk assessment and intervention capabilities, and the Integrated Cargo System,
which features sophisticated risk management technology to help the agency target high-risk cargo
and ensure the swift movement of low-risk freight. The agency has also been recognised for its work
on the Australian Maritime Identification System, designed to improve Australia’s ability to fuse
dispersed data in order to identify threats and maximise the time frame for response. This project
received a commendation in the 2008 Prime Minister’s Program Management Awards and was
recognised as the National IT Project of the Year in the Australian Institute of Project Managers 2009
awards. The agency’s detector dog initiative was also recognised by the Australian National Audit
Office in its Innovation in the Public Sector: Enabling Better Performance, Driving New Directions,
Better Practice Guide 2009.
Past examples of innovation cited by the agency to the review team have largely focused on
technology improvements. Innovation encompasses more than automating existing processes. The
recent State of the Service employee census results indicate that only one-third of agency staff
5
Sourced from the Australian Public Service Commission publication CAPABILITY REVIEW Australian Customs and Border Protection
Services, accessed at http://www.apsc.gov.au/publications-and-media/current-publications/customs/detailed-
assessment. This material is licensed for reuse under a Creative Commons BY Attribution 3.0 Australia licence.
12
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
consider the agency encourages innovation and development of new ideas. The current operating
environment and fiscal constraints have drawn the agency into a reactive cycle, which affects the
opportunity to encourage and nurture innovation.
The agency would benefit from a broader, more systemic framework for innovation that includes
engaging peers (inside and outside of government) to adapt and improve policies, systems and
structures. Innovations of this nature, which can help improve efficiencies and mitigate risk, are not
generally constrained by a need for large financial investments. The agency’s development of a
Cargo Intervention Strategy and a risk based first port boarding strategy are examples of this type of
policy-related innovation. The review team noted that the agency is working on the Traveller
Processing of the Future project, and has identified an end state that would only require
intervention when the passenger is of interest. The agency’s Executive leadership acknowledges that
this innovative thinking needs to be encouraged and recognised where it occurs.
The review team also notes that a clearly understood and expressed risk framework would provide
staff with an enhanced understanding of where innovation may be most needed to address the
more significant risks impacting the agency’s business.
13
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Department of Finance and Deregulation6
Innovative delivery



The Secretary’s desire for staff to be more innovative is clearly articulated and understood.
The pace of change needs to increase, but has been constrained by the absence of a practical
definition of what innovation means in the DoFD context.
There is an understandable risk aversion throughout DoFD that can impact adversely on the quality
and frequency of innovation. Greater effort towards transitioning from risk aversion to risk
awareness and active risk management could improve the department’s capability in this area.
Innovative delivery
Guidance questions
1. Does the organisation have the structures, people capacity and enabling systems required to
support appropriate innovation and manage it effectively?
2. Does the leadership empower and incentivise the organisation and its partners to innovate and learn
from each other, and the front line, to improve delivery?
3. Is innovation explicitly linked to core business, underpinned by a coherent innovation strategy and
an effective approach towards risk management?
4. Does the organisation evaluate the success and added value of innovation, using the results to make
resource prioritisation decisions and inform future innovation?
Rating
Well placed
An operational definition of innovation and risk
It is clearly the Secretary’s intention for the department and staff to be more innovative. This is
articulated in DoFD’s behaviours, which call for ‘innovation, creativity, and appropriate levels of risktaking’. Work has also started to reinforce that message for staff, with an example of innovation
being acknowledged in the annual Secretary’s Awards, and a Deputy Secretary being appointed as
Innovation Champion to drive innovation in the department. There are also examples where the
department has taken an innovative approach to deliver outcomes, such as the review of
government banking arrangements which set out to deliver a framework that supports adopting
creative and innovative banking solutions.
During the capability review staff within DoFD expressed a desire to improve processes and change
the way things are done to get better outcomes. However, staff have also expressed frustration at
the pace of change and, despite efforts undertaken thus far, they do not have a sense that they have
a licence to innovate or the associated support systems. This is borne out in the 2012 State of the
Service survey data which shows that only 26% of DoFD staff believe there are established processes
6
Sourced from the Australian Public Service Commission publication CAPABILITY REVIEW Department of Finance and Deregulation,
accessed at http://www.apsc.gov.au/aps-reform/current-projects/capability-reviews/dofd/part-4-more-detailed-
assessment-of-departmental-capability. This material is licensed for reuse under a Creative Commons BY Attribution 3.0
Australia licence.
14
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
for evaluating innovative ideas and only 32% believe they are given the time and resources to try out
new ideas.
While DoFD’s initial efforts to foster innovation are to be commended, including the creation of the
Innovation Champion to further explain to staff what innovation means for DoFD, the department
would benefit from further defining innovation in a way that is meaningful for staff. Indeed for a
department like DoFD, which has responsibility for and is the standard bearer of a number of
traditional functions and processes, the concept of innovation, the goal of innovation and the
boundaries for where innovation is appropriate can be difficult for staff at all levels to determine.
Risk aversion
Another factor which is impacting on DoFD’s capability to innovate is its overarching risk aversion,
which flows from a consciousness that the department is not expected to make mistakes. DoFD’s
strategic plan outlines that it will implement an ‘approach to risk that supports better business
outcomes and ensure openness and transparency in risk assessment,management and reporting,
while fostering an appropriate balance of risk and opportunity.’
The review team is supportive of steps DoFD has taken in this direction, such as the risk register
developed for Executive Board.
The review team considers that more focus should be placed on applying and promoting the Risk
Management Framework across the department. For while there is value in stability the long tenure
of many in the one position could at times be contributing to a reluctance to change practices that
have developed. Increasing mobility, as well as broadening experience in identifying and managing
risk, could result in fresh approaches.
Sharing review learnings
DoFD has a strong practice of conducting internal audits and reviews, however even more benefit
could be achieved from this practice with the wider circulation of reports and a sharing of learnings
across the department. This practice of limiting the circulation of reports was also recently identified
by Price Waterhouse Coopers, the independent internal auditor, which noted that ‘good practices
and/ or issues arising in one area do not appear to be broadly shared across the Department’.
15
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Department of Regional Australia, Local Government, Arts and Sport7
Innovative delivery - Summary



There is evidence of widespread innovation across the department’s activities.
Creativity and innovation across disparate areas of DRALGAS have been stimulated through staff
coming together from a range of agencies, bringing diverse perspectives.
The Executive Board is currently driving a concerted effort to put in place a range of formal
structures and systems to support the flow of innovative ideas into the future.
Innovative delivery - Detailed
Guidance Questions
1. Does the organisation have the structures, people capacity and enabling systems required to
support appropriate innovation and manage it effectively?
2. Does the leadership empower and incentivise the organisation and its partners to innovate and learn
from each other, and the front line, to improve delivery?
3. Is innovation explicitly linked to core business, underpinned by a coherent innovation strategy and
an effective approach towards risk management?
4. Does the organisation evaluate the success and added value of innovation, using the results to make
resource prioritisation decisions and inform future innovation?
Rating
Strong
There is evidence of widespread innovation across the department’s activities. The culture of
innovation appears to be strongest in parts of the Regional Strategy and Coordination Division, the
Office for the Arts and in Regional Development Programs branch where innovative and incremental
process improvements have led to productivity gains.
There is evidence that internal staff movement has helped stimulate creativity and innovation across
disparate areas of DRALGAS, particularly as staff have come together from a range of agencies and
bring diverse perspectives.
One significant example of the department’s innovation is streamlining the delivery model for the
Regional Development Australia Fund grants process. This involved a large reduction in staff, and
significant program redesign to shift the cost structure to the Regional Development Australia
network. The outcome was far greater community engagement in prioritisation and decision making,
significant cost savings for funding applicants and positive stakeholder feedback.
DRALGAS has formalised its approach to fostering innovation in its strategic plan by way of its
Innovation Champion and Innovation Action Plan. These are designed to embed innovative activity
7
Sourced from the Australian Public Service Commission publication CAPABILITY REVIEW Department of Regional Australia, Local
Government, Arts and Sport, accessed at http://www.apsc.gov.au/aps-reform/current-projects/capability-reviews/draglas/part-4-moredetailed-assessment-of-departmental-capability. This material is licensed for reuse under a Creative Commons BY Attribution 3.0 Australia
licence.
16
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
within and across the organisation to address employee perceptions that innovation is something
separate from their day-to-day business. To date many staff have not specifically acknowledged their
own innovative efforts as such and therefore may not have prioritised sharing, and therefore
leveraging ideas across the department.
It has been widely reported that resource constraints and pressures to engage in rapidly evolving
policy agendas have necessitated innovative approaches. In particular, the intensifying of
Commonwealth involvement in regional activity has led the department to be creative in how it
designs its response. DRALGAS needs to be constantly vigilant to ensure the appropriate expertise is
available to maintain the emphasis on innovation.
17
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Department of Agriculture, Fisheries and Forestry8
Innovative delivery - Detailed



There is a great deal of innovation within DAFF that could be better harnessed to add value for the
whole department.
There should be a higher profiling of the worth and returns from the risk-return approach, a clear
example of innovation focused towards efficiency and effectiveness. This strategy needs to be
subject to continuing, rigorous evaluation.
The I-Gen (innovation generated) framework that has been established for pursuing and supporting
innovative ideas has value and is being improved.
Innovative delivery - Summary
Guidance Questions




Does the organisation have the structures, people capacity and enabling systems required to
support appropriate innovation and manage it effectively?
Does the leadership empower and incentivise the organisation and its partners to innovate and learn
from each other, and the front line, to improve delivery?
Is innovation explicitly linked to core business, underpinned by a coherent innovation strategy and
an effective approach towards risk management?
Does the organisation evaluate the success and added value of innovation, using the results to make
resource prioritisation decisions and inform future innovation?
Rating
Well placed
Acknowledging an innovative spirit
Within the constraints of ‘clunky’ and outdated systems, there is good evidence of innovation across
the department and a culture of continuous improvement, although this is not always recognised as
innovation but rather seen as business as usual.
Innovation in this context is particularly evident in DAFF’s operational areas, where staff feel
empowered to identify and establish changes and improvements. These improvements should be
better harnessed and shared to add value to the whole department. Other areas where innovation
has been linked to business outcomes include profiling for the risk of Asian Gypsy Moth, the creation
of the Foot and Mouth Disease modelling tool and the development of new Post Entry Quarantine
facilities.
8
Sourced from the Australian Public Service Commission publication CAPABILITY REVIEW Department of Agriculture, Fisheries and
Forestry, accessed at http://www.apsc.gov.au/aps-reform/current-projects/capability-reviews/daff. This material is
licensed for reuse under a Creative Commons BY Attribution 3.0 Australia licence.
18
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Australia’s biosecurity system in itself is highly innovative and widely renowned as one of the best in
the world, such that many of Australia’s trading partners have enhanced their own biosecurity
systems using the Australian model. For example, Taiwan established a quarantine dog program
following a technical-level visit to Australia.
The risk-return model
The risk-return model is an innovation that has improved the way DAFF undertakes its import
clearance arrangements. While it remains a work in progress, the model is underpinned by science
and evidence that focuses valuable resources on areas of risk. A key supporting principle to riskreturn is working across the biosecurity continuum—that is, pre-border, border and post-border.
This concept, which accords with best international practice in a world where goods and services
flow around the globe with ever greater speed, was strongly advocated in the Beale Review and is
reflected in the design of Australia’s new biosecurity legislation. Pre-emptive work with trading
partners presents the best form of defence, supported by sound and solid management at the
border and strategies to deal with rare occurrences when a pest or disease gets into the country.
The risk-return model is a successful concept enhancing efficiency and effectiveness, but is not
widely understood outside the sector at present. Departmental leadership should raise the profile of
the model in public forums.
The risk-return model also needs to be continuously and rigorously evaluated.
Innovation through I-Gen
The department has formalised an approach to innovation through I-Gen. Through this framework,
staff are encouraged to think about why their innovative ideas are important, how they fit with
DAFF’s mission and goals, how they will progress and how risks will be managed. Since it started in
2009, 50 I-Gen projects have been proposed, including those trialled in advance of the framework’s
official launch in May 2010. Although not all have been progressed, some have provided innovative
new ways of doing business. For example, an intranet site has been developed as a ‘super store’ for
plant and animal biosecurity-related technical resources. It links to approximately 2000 biosecurity
resources in one spot, including relevant, trustworthy websites, databases, documents and journals.
In summary, staff are generally aware of I-Gen but the formal structure around developing and
submitting proposals and assessing them can be seen as bureaucratic. This has the potential to stifle
innovation. Action is in hand to both refresh I-Gen so it does not stifle innovation and so it links more
effectively existing change and project management systems within the department.
19
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Australian Taxation Office9
Innovative delivery - Summary




The ATO has an enterprise innovation framework in place to support innovation. While it references
transformational change, it essentially facilitates bottom-up, continuous process improvement. Staff
appreciate the opportunity to put ideas forward for consideration.
Once a highly innovative agency, the ATO’s appetite for progressing transformational change has
diminished. A number of factors have contributed to this, but a sense of the opportunity cost of the
status quo is needed. It is not an option to stand still.
Greater top-down direction to guide innovative thinking and streamline idea assessment is needed.
A cultural and process shift is also required to gain traction more quickly for new ideas that are
consistent with this top-down direction.
Notwithstanding the above, many of the ATO’s business areas are exploring innovative ways to reengineer their business approaches to improve service outcomes and performance.
Innovative delivery - Detailed
Guidance Questions




Does the organisation have the structures, people capacity and enabling systems required to
support appropriate innovation and manage it effectively?
Does the leadership empower and incentivise the organisation and its partners to innovate and learn
from each other, and the front line, to improve delivery?
Is innovation explicitly linked to core business, underpinned by a coherent innovation strategy and
an effective approach towards risk management?
Does the organisation evaluate the success and added value of innovation, using the results to make
resource prioritisation decisions and inform future innovation?
Rating
Development area
Delivering innovative solutions
The ATO has previously implemented various innovative approaches, such as:




developing e-tax and pre-filling tax returns
developing the tax practitioners’ portal
introducing the compliance model and risk differentiation framework to differentiate engagement
with taxpayers based on an assessment of likelihood and consequences of non-compliance
implementing Annual Compliance Arrangements with large business to exchange information and
provide practical certainty about tax outcomes that underpin commercial decisions.
9
Sourced from the Australian Public Service Commission publication CAPABILITY REVIEW Australian Taxation Office, accessed at
http://www.apsc.gov.au/aps-reform/current-projects/capability-reviews/ato/more-detailed-assessment-ofagency-capability. This material is licensed for reuse under a Creative Commons BY Attribution 3.0 Australia licence.
20
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Many areas in the ATO continue to identify and explore innovative ways to re-engineer their
business approaches, to increase service outcomes, realise efficiencies and improve effectiveness.
Current significant examples include leveraging natural systems, making greater use of analytics,
increasingly digitising service offerings, and working with other agencies towards a single point of
access for dealing with government.
A significant number of internal and external interviewees suggested the ATO would benefit from a
cultural paradigm shift to support greater innovation, especially top-down, executive- driven
innovation. This should include ATO officers proactively discussing reforms with the Treasury,
becoming more forward and outward looking, streamlining internal and external consultation,
embracing emerging technologies and encouraging fresh thinking. It should also involve greater
mobility between the broader APS and private sector.
Internal and external interviewees also noted the importance for the ATO to continue to innovate in
areas where it has previously held a comparative advantage, such as with electronic service offerings
and consultative arrangements. This will help the ATO to be a world leader in these areas. Some
OECD publications, such as the forthcoming Tax Administration in Advanced and Emerging
Economies: Comparative Information Series 2013, show that the ATO is starting to lag behind other
revenue offices internationally.
Idea assessment
Substantial internal commentary noted that it can take years before a new idea or innovation gains
sufficient traction and support within the ATO to be progressed beyond the idea stage. This is often
due to the time it takes to gain cultural acceptance, identify and allocate resources, and define idea,
scoping and implementation responsibilities. This may be exacerbated when an idea is outside of
existing ATO paradigms. The ATO’s current approach is to progress senior approval for innovative
activities through its Corporate Design Forum (a committee of SES Band 2 officers). Due to the large
number of people involved, however, this impedes fast decision making and is an example of overconsultation. The ATO would benefit from a more streamlined process for top-down innovation to
accelerate decision making.
To streamline idea assessment, the ATO could consider greater top-down, or centralised, direction
and decision making to identify key areas where it should explore major innovative business
solutions, who is responsible for scoping and presenting ideas, and who is responsible for approving
the transition from idea to implementation. These ideas should flow from the long- term strategic
plan and clear executive mandate for specific outcomes and reforms. The ATO’s current process is
often extended due to significant internal discussion, consultation in pursuit of internal consensus
and the need for broad support at senior levels before an idea can progress. While democratic, this
approach hinders organisational agility and may be drawn out due to conflicting perspectives of
organisational direction. The need for a streamlined approach to innovation is also highlighted when
the ATO is compared to other revenue offices. For example, the United Kingdom’s Her Majesty’s
Revenue and Customs department recently implemented real-time tax reporting for employeerelated obligations, while the ATO has been internally considering this idea for a number of years.
Business improvement
The ATO has a solid approach to bottom-up innovation with a formal enterprise innovation
framework, an ICT innovation system through which staff can submit ideas, and business line
campaigns designed to gather staff ideas on specific issues, such as unplanned leave and staff
development needs. Many staff below SES level commented that they appreciate the opportunity to
21
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
contribute to this bottom-up approach to innovation. Substantial internal commentary also noted
that a full ICT forward work program regularly hinders the ability to implement staff ideas, including
recent ones that won ATO innovation prizes for the significant benefits they could deliver to the
agency.
Realising the benefits of innovation
Further streamlining the ATO’s approach to innovation is especially important to ensure the
organisation is well placed in key, rapidly evolving areas such as internal and external ICT, changing
workforce needs, and global shifts towards increasingly digitised service delivery. In turn, faster
implementation of new ideas and solutions will support the ATO to become more agile, responsive
and prepared for future and external challenges. These challenges include aligning with whole-ofgovernment service delivery approaches, managing ageing workforce demographics, dealing with
advanced approaches to tax avoidance, delivering against increasing government expectations,
examining the impact of increasing globalisation on business reporting and dealing with other
challenges associated with a rapidly evolving world.
22
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Department of Foreign Affairs and Trade10
Innovative delivery - Summary


Evidence of innovation and continuous improvement is found in a number of DFAT’s service
processes, particularly passports, property and consular services.
However innovation and experimentation more widely can be impeded by a culture of risk aversion.
More should be done to encourage innovation in the department and to share results.
Innovative delivery - Detailed
Guidance Questions




Does the organisation have the structures, people capacity and enabling systems required to
support appropriate innovation and manage it effectively?
Does the leadership empower and incentivise the organisation and its partners to innovate and learn
from each other, and the front line, to improve delivery?
Is innovation explicitly linked to core business, underpinned by a coherent innovation strategy and
an effective approach towards risk management?
Does the organisation evaluate the success and added value of innovation, using the results to make
resource prioritisation decisions and inform future innovation?
Rating
Well placed
DFAT is responsible for the delivery of a wide range of outcomes. These include advice on foreign
and trade policy to its own ministers; advocacy for, and implementation of, those policies in
Australia and overseas; assistance to other ministers and APS agencies in their international
activities; and support for the activities of Australians abroad. It also delivers the infrastructure that
make these things possible: the overseas network, including property and common services to
Australian agencies represented overseas; the international communications system; security at
overseas posts; and the provision of consular services and passports to Australians.
Strong examples of innovation can be found around the department and at its overseas posts.
Nevertheless, an innate caution in the department’s culture and the risk aversion noted by many
departmental officers makes innovation in other delivery areas rarer.
The many DFAT officers who described the department’s culture as risk-averse to the review team
seemed to apply different meanings to the term: over-regulation; reluctance to take decisions; and
policy conservatism. The overseas network is mostly excluded from this criticism—a willingness to
take risks seems greater outside Canberra. It might not be surprising that risks are diminished with
10
Sourced from the Australian Public Service Commission publication CAPABILITY REVIEW Department of Foreign Affairs and Trade,
accessed at http://www.apsc.gov.au/aps-reform/current-projects/capability-reviews/dfat/part-4-more-detailed-
assessment-of-departmental-capability. This material is licensed for reuse under a Creative Commons BY Attribution 3.0
Australia licence.
23
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
distance from the centre, but the effect is to encourage a wider range of innovation at posts than in
Canberra.
Innovation and continuous improvement in Canberra is most evident in the delivery of passport as
well as property and consular services—for example, in the Australian Passports Office’s new facial
recognition capability.
An appropriate approach to innovation necessarily involves mature and sophisticated engagement
with risk, and therefore a well-developed risk management approach. The current risk-averse
culture does not result in zero risk. It reduces the likelihood of some risks, but leaves others
unmanaged and unaddressed. For example, the lack of an articulated approach to innovation in
policy development may be one reason stakeholders commented on DFAT’s caution in adding new
ideas to complex policy debates. A successful innovation culture in the department would also see
the potential for innovation in all areas of work, ranging from management of property to
engagement with Asia. Innovation is not simply about new technologies.
Experimentation needs to be encouraged more widely in delivering the department’s less tangible
services, including policy advice to government and management of external relationships.
Innovative ideas need to be evaluated, rewarded and systematically carried throughout DFAT. This
objective is linked as well to the need for better capability in knowledge management, addressed
earlier in the report.
Opportunities to learn from each other
The department attracts and retains exceptional people, but greater connections between staff and
their colleagues from other APS agencies and the broader business community would offer exposure
to new ways of doing things and better understanding of how to operate more effectively across
government. As outlined in the leadership discussion, greater staff movement in and out of DFAT
would bring with it new ideas and different perspectives, strengthening innovation capability.
Greater demands should be placed on staff to evaluate their activities and processes against outside
benchmarks and to look for more effective ways of doing things. The department’s success in
responding to rapidly increasing demand for consular services demonstrates that it is capable of
thinking radically about its delivery models.
24
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Department of Industry, Innovation, Climate Change, Science, Research and
Tertiary Education11
The innovation challenge: Leading by example
As Australian industry and business needs to be innovative to improve its productivity, so too
DIICCSRTE needs to be innovative in its way of working and thinking.
Indeed, the department needs to be seen as credible by the private sector if it is to effectively
advocate for greater levels of innovation within business and industry. Staff will benefit from
adopting a mind-set that supports innovation and recognises its fundamental value. In doing so, the
department will almost by default become the exemplar for innovation across the public service.
At present there are many examples of how the department is supporting innovation in the private
sector through its initiatives and programs and there are some examples of innovation within the
department itself. Examples include the adoption of a No Wrong Door policy (which is making
pathways into the department easier for clients), the deployment of cloud-based program delivery
and a new, open approach to the use of social media by staff.
While there are discrete elements encouraging innovative thinking, overall the department is
challenged by cultural and systemic issues, such as failing to encourage and support new ideas from
staff and building systems to allow these ideas to be integrated into core business when proven
worthwhile. Equally, throughout the recent MoG changes, opportunities to adopt better practices
from agencies joining the department have not been taken up.
Indeed, in this respect the senior review team have often heard that parts of the department are
overly focused on input controls to the detriment of an innovative spirit, just as a high level of risk
aversion is believed to be stifling the willingness of staff to try new ways of working.
However an innovative culture alone is not enough. Systemic issues exist when it comes to
translating ideas into improved outcomes and the department should consider increasing its
investment of resources to support internal innovation along with ongoing monitoring and
reporting.
It is clear, therefore, that the department’s leadership needs to create a climate that makes
innovation imperative. Innovation is core to shaping the economy. Taking advantage of the
opportunities provided by uniting major functions within the department will assist the department
to maximise its impact and enhance its reputation.
Innovative delivery - Summary

The department should be supporting private sector innovation and setting an example to the
public sector. However it is held back by its cultural and systemic issues.
11
Sourced from the Australian Public Service Commission publication CAPABILITY REVIEW Department of Industry, Innovation, Climate
Change, Science, Research and Tertiary Education accessed at http://www.apsc.gov.au/aps-reform/current-
projects/capability-reviews/diicsrte/part-3-summary-assessment. This material is licensed for reuse under a Creative
Commons BY Attribution 3.0 Australia licence.
25
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.

The department does not have a culture that supports innovation and its leaders need to create
a climate that encourages an innovative spirit. There is also a need for the department to build
the requisite systems for translating innovation into improved outcomes.
Innovative delivery - Detailed
Guidance Questions




Does the organisation have the structures, people capacity and enabling systems required to
support appropriate innovation and manage it effectively?
Does the leadership empower and incentivise the organisation and its partners to innovate and learn
from each other, and the front line, to improve delivery?
Is innovation explicitly linked to core business, underpinned by a coherent innovation strategy and
an effective approach towards risk management?
Does the organisation evaluate the success and added value of innovation, using the results to make
resource prioritisation decisions and inform future innovation?
Rating
Development area
Leading public service innovation
Generally speaking DIICCSRTE is not viewed by external stakeholders, other government agencies or
by DIICCSRTE staff themselves as particularly innovative.
There are a number of possible reasons for this, including a historic dimension of under investment
and lack of leadership focus. The recent MoG changes have meant to a degree that attention has
been directed towards managing the change on top of normal business with little time to be
innovative. The 2012 State of the Service census data indicated that staff felt managers were
unwilling to take risks or consider new ideas. Risk aversion and technology were also considered by
staff as barriers to innovation.[5] The State of the Service data is supported by similar findings from
this review.
To be credible in promoting the benefits of innovation to Australian businesses, the department
needs to be seen as innovative. There is evidence to suggest that the department needs to further
develop its ability to think innovatively. However, when it innovates it does so well and often links its
innovative thinking back into core business and improving overall performance. One example is
around improved response times for small business enquiries to ministers offices. The Small
Business Support Line regularly assists enquiries made to these offices, by contacting the caller and
providing relevant information, support and advice. Recently this service has been expanded to
respond to relevant ministerial correspondence. This innovation has been positively received by
constituents who have been contacted through the support line.
Another example is the new IT Blue Shirt Service program aimed at providing targeted onsite and
desk-side support to staff across all DIICCSRTE sites and improving ICT service delivery by targeting
areas for dedicated periods rotating through each division, including interstate locations. This
recognises the various IT infrastructure needs of staff and the department’s locations.
26
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
A number of discrete initiatives could already be linked under a framework to help encourage and
strengthen innovative thinking, such as the People Recognition Framework, the provisions in the
One Innovation Enterprise Agreement, Ideas Central and the new departmental values (one of the
five values encourages innovation and continuous learning).
While the department cannot be the sole leader driving innovative delivery in the public service it
should aim to create a strong culture and climate that encourages and fosters innovation and set an
example for other departments and agencies. It is encouraging to note there is an appetite within
DIICCSRTE to be more innovative and acknowledgement by most that it should set an example. An
example of the department building this culture is its inaugural internal Innovation Expo for staff
held in August 2013. The expo’s purpose is to give staff a broader understanding of the department’s
divisions, highlight its diversity and scale of work and provide an important networking opportunity
at all levels.
For cultural change to lead to greater levels of innovation, the department must ensure it is
supported by appropriate systems and resourcing.
27
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Treasury12
Innovative delivery - Summary



Part of Treasury’s core business is providing insightful and rigorous solutions to challenging policy
problems and being innovative in the development of policy advice. This is at the heart of what
Treasury officers do, and do well.
Treasury demonstrates examples of continuous change and creativity in relation to information and
communications technology (ICT), policy development and organisational issues. There is no formal
framework for sharing ideas across the department or raising ideas and seeing them through to
completion.
Treasury has an opportunity to seek ideas from staff on more efficient ways of working to help to
address the challenges the department is facing.
Innovative delivery - Detailed
Guidance Questions




Does the organisation have the structures, people capacity and enabling systems required to
support appropriate innovation and manage it effectively?
Does the leadership empower and incentivise the organisation and its partners to innovate and learn
from each other, and the front line, to improve delivery?
Is innovation explicitly linked to core business, underpinned by a coherent innovation strategy and
an effective approach towards risk management?
Does the organisation evaluate the success and added value of innovation, using the results to make
resource prioritisation decisions and inform future innovation?
Rating
Well placed
Innovation in Treasury
Part of Treasury’s core business on which it consistently delivers is the provision of insightful and
rigorous solutions to challenging policy problems. Being innovative in the development of policy
advice is at the heart of what Treasury officers do, and do well. Successive governments continue to
seek the department’s involvement in the development of innovative solutions to challenging policy
issues, some of which arguably fall beyond the traditional remit of a national Treasury. This indicates
a high level of confidence in Treasury’s ability to deliver innovative solutions.
There is a vigorous culture of robust debate within the department. This is particularly focused on
policy and quantitative analysis. New ideas are valued and objectively analysed by staff at all levels
within Treasury, encouraged by the Executive Board.
12
Sourced from the Australian Public Service Commission publication CAPABILITY REVIEW Department of The Treasury, accessed at
http://www.apsc.gov.au/aps-reform/current-projects/capability-reviews/tsy/part-4-more-detailedassessment-of-departmental-capability. This material is licensed for reuse under a Creative Commons BY Attribution 3.0
Australia licence.
28
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Staff are open in talking about and testing ideas. Treasury has the ability and underlying knowledge
to tailor solutions and responses to specific problems and do genuinely innovative thinking in the
policy space. An example of this is the work being done through the Strategic Scan project, a wholeof-department project initiated in 2012 to stress-test currently accepted views and assumptions on
key policy issues and identify where gaps in thinking and knowledge need to be addressed.
Other examples of innovation include Treasury’s performance management system, the five-level
management structure and associated devolution of decision making, and the deployment of a
project management-based approach to legislation management in Revenue Group. Treasury has
also demonstrated a capacity to innovate with the harnessing of ICT to deliver innovations to
address core business issues. Examples include the Odysseus project, Active-Active data
warehousing, a dedicated G20 mobile application designed for international delegates, upgrades to
the business analytics software, called SAS, and new knowledge management systems:




Odysseus: is a custom data analytics system that provides Treasury staff with a trusted source of the
latest economic data and combines this with analytical and reporting tools designed to assist staff in
undertaking their work more efficiently and effectively. The system was built by an in-house team
over a two-year period and was delivered to the Domestic Economy Division modellers in late 2011.
An internal audit undertaken in 2013 found that the project has largely delivered the functional
capabilities consistent with Domestic Economy Division expectations and business requirements,
and that ways of using it more broadly across the department should be considered.
Active-Active data warehousing: Typically Active-Active is used by big service delivery agencies that
run 24/7 operations and therefore always need to be ‘on’. Treasury is one of the very few policy
agencies that use this type of warehousing, which enables it to provide a high availability policy
development environment and more reliably produce policy and products like the Federal Budget.
Other ‘like agencies’ have expressed interest in accessing this solution.
G20 mobile application: Information Management and Technology Services (IMTS) Division is
engaging the G20 taskforce to develop innovative solutions. The division saw a possibility for
delivering streamlined critical information to the G20 delegates through a mobile Android or Apple
application, including accommodation, travel and conference information in many different
languages. This is being developed.
SAS: An updated version has been tailored to modelling areas’ specifications. It runs off the system
server, giving work location flexibility to staff.
SharePoint and wikis: Only 28 per cent of staff uses Treasury’s records management system, TRIM,
regularly, despite efforts over a long time to encourage staff take up. After consulting with the
National Archives of Australia and observing trials at Australian Bureau of Statistics of a similar
product, IBM Stack, Treasury (led by the IMTS Division) decided to switch to SharePoint as its records
management system. As part of this, wikis will be created in each division to keep track of
documents, emails, file notes, call logs and other information. The roll out should be completed by
the end of 2013.
Turning ideas into tangibles
Treasury’s staff are bright and a significant potential resource of innovative ideas. While these ideas
are regularly drawn upon when it comes to policy development work and a select group of projects
beyond policy, Treasury would benefit from a systematic process for harvesting the ideas of its staff
more broadly and for sharing ideas that could be implemented in multiple areas of the department.
Some staff commented about the lack of support they received when proposing ideas to their
managers. Others had originally received support, but then ideas were not pursued through to
implementation and staff did not receive adequate explanation on why this was the case.
29
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Evidence suggests that business processes have been slow to change and it is only in the last few
years that improvements have been realised (although catch-up is still being played compared to
other areas in the APS). There are, however, pockets of innovation, which may not be widely
communicated, such as the Mindfulness course pilot[5], and a project management approach to
managing tax legislation. Innovation can also be seen in the department’s approach to modelling
and in some areas of policy implementation.
One initiative to facilitate the coordination of business ideas and solutions across the department
was the creation of ‘business change agents’. Each group has a nominated business change agent to
facilitate consideration of business innovation requests emanating from their group through a
regular forum of exchange with the Information Management and Technology Committee. While
this forum has an ICT focus, it may be worth considering a process that would create an avenue for
ideas to be taken forward, noting that it is important to progress all ideas, including those not
related to ICT. This would ensure that ideas do not necessarily depend on the support of a manager.
An innovation framework is being developed, and a pathway for ideas to be progressed within the
department could usefully be included. Tapping into staff ideas to improve efficiency and
effectiveness would be particularly valuable at this time given the challenge Treasury is facing with
resource constraints. The proposed framework could also include a robust communication strategy
to accompany and drive the implementation of new ideas.
30
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Department of Families, Housing, Community Services and Indigenous
Affairs13
Innovative delivery - Summary




Innovation is one of the five values of FaHCSIA’s strategic framework. The department is looking to
further encourage innovation in core business through the creation of an annual Recognition and
Appreciation Award for Innovation.
Innovation is occurring in pockets of business often through bespoke community-based programs.
Where it is occurring, ideas and lessons learned need to be more broadly shared.
FaHCSIA does not have a systematic approach to system or department-wide innovation, which is
being blocked by its silos.
Greater top-down direction to guide innovative thinking and streamline idea assessment is needed.
Innovative delivery - Detailed
Guidance Questions




Does the organisation have the structures, people capacity and enabling systems required to
support appropriate innovation and manage it effectively?
Does the leadership empower and incentivise the organisation and its partners to innovate and learn
from each other, and the front line, to improve delivery?
Is innovation explicitly linked to core business, underpinned by a coherent innovation strategy and
an effective approach towards risk management?
Does the organisation evaluate the success and added value of innovation, using the results to make
resource prioritisation decisions and inform future innovation?
Rating
Well placed
The review found that FaHCSIA has the capability to deliver innovative results for government. This
is evident across a number of recent challenging initiatives. Innovation in business processes is
occurring in pockets across the department, for example. FaHCSIA is also in a good position to
further harness and support innovation. The department may wish to consider developing a
framework or strategy to encourage and share innovation across its business units, including sharing
best practice and lessons learned.
An appropriate approach to innovation necessarily involves mature consideration of risk. Risk is
discussed further in ‘Manage performance’.
13
Sourced from the Australian Public Service Commission publication CAPABILITY REVIEW Department of Families, Housing, Community
Services and Indigenous Affairs, accessed at http://www.apsc.gov.au/aps-reform/current-projects/capability-
reviews/fhcsia/part-4-more-detailed-assessment-of-departmental-capability. This material is licensed for reuse under a
Creative Commons BY Attribution 3.0 Australia licence.
31
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Delivering innovative solutions
Strong examples of innovation were highlighted around FaHCSIA and in its state and territory-based
network. Specific examples were evident in the payment and income, disability reform and in some
Indigenous programs.
Many of the department’s policy and program initiatives were challenging in concept and
encompassed strong political pressure with conflicting stakeholder views and tight timeframes. Their
successful delivery demonstrates that FaHCSIA has the capability to be creative and flexible in
delivery for government.
FaHCSIA avoids the one-size-fits-all model for service delivery and is proud of the flexibility it affords
service providers to customise its delivery of services. The department’s adoption of this approach
has enabled more adept service providers to mix and match services to best suit their local
communities. There are some inherent potential tensions surrounding this flexibility and the
introduction of Delivery Reform seeks to standardise processes.
FaHCSIA’s strategic framework highlights five core values, one being innovation. The department
however, lacks more formal systems for innovation and more work is needed at whole-ofdepartment level. Large inconsistencies exist across the department in the management of service
delivery, which causes stakeholder confusion and frustration. A more consistent and consolidated
approach to service delivery is required. The department believes this will be addressed through
Delivery Reform, which is intended to provide more rigor and consistency to contract management.
Many areas of FaHCSIA actively identify and explore innovative ways to improve their workplace. A
current example includes the Victorian State Offices’ recent move from a program-specific model to
a place-based service model for contract management. This has positioned the staff to better
integrate with other government departments in Victoria while working across eight regions.
Harnessing innovations and sharing knowledge
While innovation is occurring in pockets, FaHCSIA’s current culture of operating in silos results in
innovation not being captured or widely shared. As resource pressures mount, new demands on the
department will require innovation and experimentation.
The department may also benefit from a knowledge-sharing mechanism to broaden its use of
creative and innovative ideas. By encouraging knowledge sharing across FaHCSIA, staff will be able
to share best practice, successes and lessons learned, all of which will be useful to inform future
innovation in the workplace. The creation of a knowledge-sharing structure would also encourage a
break down across the silos evident in the department today.
32
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
Department of Resources, Energy and Tourism14
Innovative delivery - Summary

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RET has pockets of innovation in research, policy, program development and delivery but they are
adhoc. A more structured approach is required to achieve the department’s innovation potential.
The department’s cautious, risk averse culture does not encourage thinking ‘outside the square’.
Development of innovative thinking on policy and program design and on business improvement
requires encouragement and empowerment from leadership.
Opportunities for innovation and business process re-engineering were missed during RET 2012 and
the MoG changes pre-2013. This has been recognised by the department.
Innovative delivery - Detailed
Guidance Questions
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Does the organisation have the structures, people capacity and enabling systems required to
support appropriate innovation and manage it effectively?
Does the leadership empower and incentivise the organisation and its partners to innovate and learn
from each other, and the front line, to improve delivery?
Is innovation explicitly linked to core business, underpinned by a coherent innovation strategy and
an effective approach towards risk management?
Does the organisation evaluate the success and added value of innovation, using the results to make
resource prioritisation decisions and inform future innovation?
Rating
Development area
RET recognises the importance of innovation for the future success of the industry sectors it
supports. The Energy White Paper 2012 outlines the department’s role in driving innovation and
technological advancement in Australia’s energy markets and supporting business innovation
towards improved energy services and lower costs. The department has also been at the forefront of
exploring innovative options for improving the way it supports the development of clean energy
technologies. In a transitioning economy, commitment to innovation and continuous business
improvement will be critical to the productivity and sustainability of the resources, energy and
tourism sectors.
This commitment to industry innovation is equally applicable to RET. Pockets of innovation operate
within the department’s research, policy, and program areas. For example, the Energy Efficiency
Division’s section called ‘program development and evolution’ works with industry to establish
better ways to implement innovative programs to achieve greater energy efficiency.
14
Sourced from the Australian Public Service Commission publication CAPABILITY REVIEW Department of Resources, Energy and Tourism,
accessed at http://www.apsc.gov.au/aps-reform/current-projects/capability-reviews/dret/part-4-more-detailed-
assessment-of-departmental-capability. This material is licensed for reuse under a Creative Commons BY Attribution 3.0
Australia licence.
33
March 2014 - Prepared by Department of Industry, for the Public Sector Innovation Toolkit
(http://innovation.govspace.gov.au) as a working document.
The department acknowledges that while it demonstrates good examples of innovation, this is an
area where greater attention is needed to cultivate and embed a culture of innovation. Staff
describe RET as cautious and risk averse. This stifles innovative thinking. There is no departmental
mechanism to provide incentives for innovation or to capture business improvements, other than
the PMDC with its mandate to share best practice for programs. The review team notes that the
recent Annual Secretary’s Awards included recognition of a staff member who developed an
application to enable industry to leverage specific information held by RET. It would be helpful if
innovation was an ongoing and specific category of the Secretary’s Awards, and the department
would further benefit from consideration of a framework to help foster and encourage new ideas
and innovative thinking.
RET has shown little progress in terms of business improvement, evidenced by the static nature of its
corporate templates, systems and processes. Throughout the review many staff expressed
frustration at the lack of attention to internal business improvement. Data from the 2013 SOSR
supports this view with only 37% of respondents indicating they felt their work group had
implemented an innovation. This figure was 12% below the APS average.
Interviews with staff revealed a business-as-usual culture within the department. There is potential
for the leadership team to encourage innovative thinking across RET. The current refresh of the
corporate plan presents an opportunity to integrate innovation as part of the department’s mode of
operation, encouraging thinking ‘outside the square’ and contributing to business improvement.
RET 2012 was a missed opportunity for innovation and business process re-engineering within the
department. It was approached as a cost-reduction exercise, with the primary goal to reduce
departmental spending quickly. Notwithstanding this goal, RET 2012 still presented an opportunity
to re-engineer more effective, department-wide processes and systems. In the event of further
structural changes to the department and additional resource constraints, the opportunity for
efficiency gains needs to be realised.
34